Whistleblowers Deutsche Bank declined to $ 8 million from the principle – BBC

Two award for three

Such that the informant refused the award, did not occur in all the work of the state program, launched in 2011, writes the Financial Times. The program involves the payment of 10 to 30% of fines levied by the Securities and Exchange Commission (SEC), those who are able to provide basic information about the violation.

But in the history of with investigation against Deutsche Bank from the beginning it all went wrong, as usual. For example, according to the FT, the whistleblower was three, but only two of them have received awards. The volume of payments in the amount of $ 16.5 million was one of the largest in all of the work program -. The third largest in SEC history

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Awards by the commission in the amount of $ 8.25 million each were to receive two former bank employee: in addition to Ben-Artzi, who worked as a manager for risk assessment , it was also awarded Matt Simpson, a former sales manager for Deutsche Bank.

The information independently of each other, two informant sent US authorities allowed the US regulators fined Deutsche Bank for $ 55 million last year. SEC found that the bank reflected in the statistics of the false value of the height of the 2008-2009 crisis, some major derivatives positions in order to conceal losses.

But there was a third officer Deutsche Bank, which is also in contact with the SEC back in 2010 year and provided evidence of an incorrect assessment of derivatives. He also claimed the award, but his application for some reason was rejected. the man’s lawyer, who wished to remain anonymous, said that the client can not find the meaning of the SEC action, nothing is done for a long time. The lawyer also noted that he considers a mistake on the part of the regulator to leave his client without compensation.

The problem revolving door

Ben-Artzi, who refused the money, also unhappy with the decision SEC. According to him, the penalty would have to pay the bank’s managers, not shareholders. For this reason, Ben-Artzi and refused compensation, stating that “will not be attached to plunder the people intended to protect”, although, as the newspaper notes, the source of rewards for whistleblowers is not very fine, but a special fund established by Congress for these goals

Ben-Artzi also suggested that the “revolving door” by which is meant the rotation of staff between the top management of the SEC and the largest German bank, contributed to the fact that managers of Deutsche Bank were not punished, and retired and also retained their bonus payments

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in the column for the FT Ben-Artzi said that senior SEC lawyers before occupied senior positions at Deutsche Bank and personnel exchanges between the bank and the SEC continued even during the investigation. Both organizations have refused to comment on this information FT

It is true that part of the remuneration Ben-Artzi will still be paid -. His lawyers and experts who represent him in the proceedings. The share of the remuneration also claims his ex-wife. From the money that these people rely, the informant has not refused, explaining that it is not entitled to do so.

Thus, the only of the three whistleblowers who was satisfied and got a reward, became Matt Simpson. From a statement by his lawyer shows that Simpson is very grateful for the money but the main award considers the fact of full and unconditional acknowledgment of its information during the investigation.

Deutsche Bank, according to calculations agency Bloomberg, in 2008 spent more than $ 10.5 billion on fines and litigation.

The bank’s shares since the beginning of the year to the end of July fell by 46% in the June IMF report on the sustainability assessment the financial sector pointed out that it is among the largest banks from Deutsche Bank are based on the greatest risks to global finance. The American branch of the bank in this year did not pass the stress test US Federal Reserve.

However, the results of stress tests of European banks, released by the end of July, Deutsche Bank showed greater resistance than expected. It turned out that the capital adequacy he is at an acceptable level, even if the adverse scenario.